Cost Management

For an enterprise to thrive costs must be under control. There are many approaches of varying complexity available to ensure the organization’s costs are optimized. The variety of techniques allows any organization, independent of levels of complexity and sophistication to critique the cost structure and explore alternatives throughout the product lifecycle.

Cost Management - Value Transformation

Brainstorming

Brainstorming can be used for problem-solving as well as uncovering alternative approaches that may improve the cost structure for the product or process. Brainstorming is conducted multidiscipline to gather the most perspectives possible from which selection of the best possible solution will be made. We will employ many team idea generating and collecting methods as well as the use of tools such as mind mapping to build associations from which we can generate the best solution. Brainstorming does not apply solely to cost, but can also be applied to design solutions as well. We have used this technique many times to improve cost and generate intellectual property (patents).

Function Allocation Systems Technique

FAST is an acronym for functional analysis system technique. FAST allows us to reduce ambiguity in the definition of a functional product or a functional process. Value of a product is interpreted differently by different customers. Characteristics that are common to value are high level performance, capability, emotional appeal, and style relative to its cost. Value is generally expressed in terms of maximizing the function.

Value = (Performance + Capability)/Cost
Value = Function/Cost

Lean

Lean is a set of techniques that are typically employed to improve the costs in manufacturing by reducing waste, but not exclusively. In fact, this technique can be applied to process management in general, such as product development, and not just manufacturing. Cost improvement comes from managing and controlling aspects of manufacturing that have increase the cost. This includes transportation, inventory, motion, wait, over processing, over production, and defects.

Make or Buy Analysis

Make or buy analysis considers the scope and objective of the work compared to the company strategies and tactics for growth. Make refers to the company decision to internally handle the design and or fabrication of the component or subassembly. Buy refers to outsourcing the component or subassembly. There can be many compelling reasons to select one or the other of these alternatives rather than leave to random chance or little forethought.

Teardown

Teardowns are used to learn the cost implications of the design, often another manufacturer of the product. Tearing the product down is one method to identify and understand the cost drivers for the product. This includes the manufacturing, material composition and assembly of the product. The teardown will be multidiscipline approach to obtain a multitude of perspectives that will help ascertain the constituents of the product cost. This can be material, design or methods of production.

Product Lifecycle Management: Development to Retirement

Product Lifecycle Management (PLM) streamlines product development, configuration management, verification, and testing. Discover tools for efficient PLM and overcoming lifecycle challenges.  This is not an article on the tool selection process, or those that provide these tools. The genesis of this post is from a LinkedIn post that was subsequently taken down – for some […]

The Role of Product and System Documentation in Manufacturing

Introduction Product and system documentation is crucial in product development and manufacturing to ensure efficiency, quality, and long-term product support. These documents—including product specifications, system requirements, and design records—serve as blueprints for engineers, technicians, and future teams. When incomplete, outdated, or ignored documentation occurs, businesses face serious operational and financial risks. The genesis of this […]

Models, Simulation, Product Development and Testing

Models, Simulation, Product Development and Testing Why Models and Simulation Matter in Product Development I was recently at an event at an Advanced Manufacturing event at a local technical school.  There was a superb presentation on a student project; nothing like real-world applications to uncover the things presented to the development team.  We can contrive […]

Hands on Projects for Engineering Students

By Jon M. Quigley Baja SAE Carolina 2025: Practical Projects for Engineering Students We all need a place to practice our craft.  It is not enough to have a degree in a field; it takes more than a degree, and we must learn how to apply it. The same is true for students with engineering […]

Baja SAE Carolina: The Ultimate Off-Road Engineering Experience

By: Jon M. Quigley Introduction For budding engineers, theoretical knowledge alone is never enough. Practical experience plays a critical role in shaping future innovators who are well-prepared to tackle real-world problems. One such opportunity to gain hands-on exposure is Baja SAE Carolina. This premier off-road engineering competition challenges students to design, build, and race their […]

Creative Problem Solving

Unlocking Innovation and Lateral Thinking Creative problem-solving is a dynamic approach that pushes individuals and teams beyond conventional boundaries. By nurturing a culture of curiosity, open-mindedness, and experimentation, creative problem-solving empowers you to tackle challenges in new and unexpected ways. When combined with lateral thinking, you can uncover solutions that might otherwise remain hidden.  We […]

Guide to New Product Development

Introduction to New Product Development New product development is the process of transforming an idea into a marketable product or service. It involves market research, product design, testing, and eventually launching into the marketplace. By following a well-structured approach, businesses can reduce risks, optimize resources, and set a clear trajectory for growth.  We have spent […]

QS9001 vs IATF 16949: Benefits and When to Choose

Understanding QS9000 and IATF 16949 Standards For organizations in the automotive industry, selecting and implementing the right quality management system is vital for operational excellence. Two prominent standards, QS9001 vs. IATF 16949, offer distinct frameworks for achieving quality objectives.  Over the decades, we have been involved with both approaches in many ways, from being audited […]

Additive Manufacturing and IoT

Introduction to Additive Manufacturing and IoT Additive manufacturing, commonly referred to as 3D printing, has revolutionized production across industries by enabling the creation of complex components with minimal waste. The rise of the Internet of Things (IoT) has further enhanced additive manufacturing capabilities, allowing for more intelligent, more connected, and highly efficient production systems.   […]

Press Release New Book: “Cost Efficiency Unleashed”

FOR IMMEDIATE RELEASE Unlock the Secrets of Superior Cost Efficiency with a New Book: “Cost Efficiency Unleashed” “Innovative Guide Offers Advanced Strategies for Transforming Product and Process Improvement” Lexington, NC- September 21, 2024 – Pursuing cost efficiency has never been more critical in a rapidly evolving business landscape.  We are constantly working to improve the […]

Building a Cause and Effect Diagram

Pugh Matrix

How to Brainstorm

Using Pareto Charts

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